DaVita Inc. reported net income for the second quarter of 2017 grew more than 139% to $127 million, or $0.65 per share, compared to $53 million, $0.26 per share, in the same quarter last year. In a conference call about the quarter, CEO Kent Thiry characterized the quarter as “solid.”
During a Q&A session, Kidney Care CEO Javier Rodriguez discussed legislation in California, AB 251, that would require major dialysis chains in the state to rebate excessive revenue each year to payers. “There are some centers that are profitable and they carry all the centers that are not profitable. And so, if that passes, it would have a disruption to the care and over the long haul, it would be a real problem for the ERs and for the patients there. So we hope that policy makers will see through this as what it is, which is bad policy, and we of course are working hard with all our constituents in the community to educate them.”
Operating income for the quarter was $378 million, and adjusted operating income was $436 million.
Total U.S. dialysis treatments for the second quarter of 2017 were 7,035,894, or 90,204 treatments per day, representing a per day increase of 4.3% over the second quarter of 2016. Normalized non-acquired treatment growth in the second quarter of 2017 as compared to the second quarter of 2016 was 3.6%.
As of June 30, 2017, DaVita Kidney Care provided dialysis services to a total of approximately 214,700 patients at 2,662 outpatient dialysis centers, of which 2,445 centers were located in the United States and 217 centers were located in 11 countries outside of the United States.
During the second quarter of 2017, DaVita acquired 44 dialysis centers, including the dialysis centers acquired from Renal Ventures, opened a total of 27 new dialysis centers, closed two centers, and divested six centers in the United States. The company opened four new dialysis centers and acquired 52 dialysis centers outside of the United States.